TMI Blog2000 (2) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... om the factory taking the price of 205 litres pack. They filed price declaration under Rule 173C of the Central Excise Rules, 1944 in respect of their sales from the depot. Department took the view that duty on goods sold from depot in smaller packings is not being paid as was required. On this basis, show cause notice was issued as to why the oil should not be assessed on the basis of the assessable value of half a litre packings done at the depot/packing station. Accordingly, differential duty amounting to Rs. 1,19,42,063.00 was claimed for the period from 1-10-1996 to 31-3-1997. Appellant filed detailed objection to the show cause notice. After considering the objection, the adjudicating authority by Order No. 111/Dum/97 dated 28-11-1997 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to enable adjudicating authority to expeditiously decide the matter." 2.Learned counsel representing the appellant submitted before us that while assessing the oils to duty, where the same are sold in 205 litre barrels, the bulk oil in tankers should be assessed at the same price of 205 litre barrels minus the cost of barrels and where the blended oils are not sold in 205 litre barrels but sold in smaller packings, the bulk clearances in tankers should be assessed at the price of the largest of the small packings like 20 litres minus the cost of packing and the cost of transportation from the factory gate to the depot. 3.Appellants clear blended lubricating oils from their factory to packing stations in tankers. Excise duty on bulk cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a buyer in the course of wholesale trade for delivery at the time and place of removal where buyer is not a related person and price is the sole consideration for the sale. Thus, the normal price should be that at the time and place of removal of the goods. If the goods are removed from the factory gate, price at the time of removal at the factory gate should be the basis for assessment. Place of removal after the amendment of 1996 can be the depot as well. If the place of removal is the depot, should the time of removal also be the time of removal of the goods from the depot. If the time and place of removal in the case of removal from the depot happens to be the time at which the goods are removed from the depot, then the value of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding out the assessable value for the purpose of charging it with duty of excise. 7.In the instant case, blended lubricating oils of various grades were removed from the appellant's factory in bulk in tankers as also in barrels of 205 litre capacity. Bulk removal was also assessed and tax paid on the basis of the list price of 205 litre barrels. Some grades of lubricating oil are not sold in barrels of 205 litre capacity. They are sold in smaller packing of 20 litres, 10 litres, etc. The price of such grade should, therefore, be on the basis of the price of the largest of the small packings. Under no circumstance can value of oil in smaller packings be the basis for assessment. Then the question that arises is whether the value of the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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